HE new round of HOS application was oversubscribed 60 times. It was 381 times for one-person applications. Even those holding numbers in top positions during the electronic ballot are not guaranteed a chance to choose their flats. As the number of HOS flats in the coming years will not meet the targets, the authorities must look into increasing the White Form Secondary Market Scheme (WSM) quota as well as the Green Form Subsidised Home Ownership Scheme (GSH) and First-time Homebuyers Scheme supplies to ease the demand. However, these are only a drop in the bucket. The chance of purchasing a HOS flat will still be extremely low.

There were 272,000 applications in the ballot, breaking the record since the authorities resumed HOS flat sales in 2014. As there were over 4,400 units, much more than previous rounds, the over-subscription did not break any records, but many more people were disappointed.

In addition to the prices of private flats standing high, there were "discounted prices" for the first time at 52 per cent of the market price. Those who could not afford a HOS flat at 70 per cent of the market price can now apply. As applicants are allowed to apply for the WSM at the same time, some of the many disappointed applicants may go for it instead. Although there are more choices in location, there is not much hope of purchasing a flat at the same discount .

Targets not hit in the coming five years

OTHER than the WSM, private property owners hope the return of those disappointed applicants will revive the market. However, many citizens really cannot afford private flats. So they can only wait for the next HOS " lucky draw ".

However, that is easier said than done. The annual HOS target set in the long-term housing strategy is 8,000 units. According to the latest data from the Transport and Housing Bureau, in the coming five years, the HOS supply will be at most 6,000 units. In the 2022/23 period, the supply will even " free fall " to under 1,000. Then, it will still be far off the target even with the Housing Society's 1,600 subsidised flats launched. Unless the market plunges, HOS flats will continue to be oversubscribed and the chance of getting hold of one will be extremely low.

The authorities expect the tense supply to slightly ease after 2023 because the North East New Territories New Development Areas and Tung Chung New Town Extension will hopefully provide a new batch of flats. However, with the twists and turns in the former, whether works will be completed in time is in question, not to mention that these units cannot meet the short-term demand in the coming two to three years.

Solution: find land for housing

FOR the authorities to meet urgent needs, it can consider increasing the WSM quota according to market conditions and let more eligible citizens buy HOS flats without premium. However, this is only a stopgap measure because the actual housing supply will not thus be increased. If too many people enter the market, there may have a side effect of pushing prices of second-hand HOS flats higher.

The authorities can also try to increase the GSH and First-time Homebuyers Scheme supplies to ease the pressure on the HOS. Whatever method is adopted, there will be a lack of land which will affect the supply of other types of housing.

Hence, the authorities must increase land supply fast and shorten the construction period to achieve the annual target of 8,000 subsidised housing units cooling down the private property market. When more citizens can afford private flats, the demand for HOS units will ease. Then the market is back in equilibrium .